The Cherepovets Steel Mill (CherMK), the integrated steel producer and part of the Russian Steel division of OAO Severstal, launched a project in conjunction with McKinsey, the global consultancy, to improve efficiency of basic oxygen steel production.
Sergey Toropov, CEO of Severstal Russian Steel, commented: “Our steelmaking business is where we achieved the greatest cost efficiency progress in 2013; we were able to save more than EUR 42M across our steel units, twice as much was achieved in 2012. We are continuing to deliver efficiency enhancements and achieving our goal of being the most efficient steel producer amongst our peers.” McKinsey will make a comparative analysis of CherMK’s current basic oxygen steel production performance indicators against industry best practices.
The results will highlight areas for improvement and the company will identify key initiatives to enhance its processes. McKinsey are already processing primary data. Once the results are available, a set of recommendations will be made to improve the efficiency of basic oxygen steel production.
CherMK specialists from different departments including costs, maintenance, quality, power engineering and HR are working on the project alongside McKinsey consultants.